Category Archives: embezzle

Strange but True, and Twice as Funny

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A landmark in the town of Fountain, Colorado has been stolen. It’s a relief for some but others are dismayed.

Several years ago when the Cody Driver family built their house, the neighborhood HOA required that he name his road and put up a street sign. I’m not sure what frustration led to the naming of his road, but it quickly became a landmark:

“A Dog Will Lick His Butt, But He Won’t Eat A Pickle Road”

It became a legend on the Internet. People drove from a thousand miles away to visit and get their picture taken with the sign. But it’s gone now. Somebody stole it.

(KRDO story on famous Colorado street sign)

 

 

AirBnb, A Weird New Phenomenon

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I’m biased on this subject. I have to say that out front. For many years I owned two small condos in Vail and Beaver Creek which my agent leased out to skiers on a long-term AND a short term basis. The rents were the only thing that allowed me to financially own the two properties. And they were always available to my families during ski season and during the wonderful Vail summers.

Good experiences, and bad. I did get stuff stolen. I did have the two apartments trashed. In absolutely every case the damage was done by long-term tenants. The short-term tenants were respectful of my belongings and my interior improvements and they never cost me a penny in damage. Long-term tenants were a nightmare. They stole furniture, bed sheets, draperies, silverware, you name it.

So when AirBnb came along, providing homeowners with a way to provide housing for short-term guests I was all for it. ALL FOR IT! In my experience, temporary short-term guests were more respectful, more responsible, and they helped me pay for two condos I couldn’t otherwise have afforded. And during all those years of ownership, I never once got a complaint from management. AirBnb makes sure all clients submit references and they’re constantly monitored by the service to weed out travelers or homeowners who don’t follow the rules.

Oh, but those nasty HOAs are trying to put their fists where they don’t belong. A couple in Denver’s Baker neighborhood have hoisted a banner demanding an end to the AirBnb service. And the City of Boulder has issued a couple dozen cease and desist orders against homeowners who use AirBnb to lease out their homes.

Idiocy. Absolute idiocy. If my experience is any example, you definitely DON’T want to lease your home to long termers. Those travelers who stay there just a few days are the most respectful tenants you’ll ever meet.
But maybe that’s just me.

(link to Denver story on couple trying to stop AirBnb)

 

Outrageously One-Sided Construction Defect Litigation Proposal in Florida

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guest blog by Deborah Goonan

As we gear up for the Legislative session in Tallahassee, beginning March 3, we are starting to hear the buzz about HOA-related bill proposals.

Florida HB 78, a proposed amendment to Statute 558, is among one of the most preposterous bills I have seen. Written by and for the benefit of general contractors and design professionals, the amended version seeks to substantially reduce their liability for construction defects.

As currently written, the bill proposes that owners and Associations meet difficult and costly legal standards prior to filing the initial claim. For instance, the claimant would have to provide a complete and detailed list of each instance of every defect and cite the specific code(s) violated, plus reference all pertinent spec sheets and project drawings, among other details. Essentially, the contractors are insisting that owners or Associations undertake the discovery process prior to filing the first defect claim.

Let’s say your condo building or HOA clubhouse has numerous water leaks. It would be up to your Association to hire the necessary experts to figure out the cause or causes of each and every leak, even if that means removing drywall to get to the plumbing, or removing earth from the foundation wall to look for cracks in the concrete slab. It means your HOA would have to hire an attorney to locate all of those pertinent documents that may have gone missing during the transition process. Then the attorney would have to work with experts to complete detailed reports to attach to the initial claim.

Thousands of dollars in legal costs can accumulate before the Contractor will even consider confidential settlement talks with the HOA or owners. Of course those settlements have to be confidential, so that future buyers will never know what kind of a time bomb they intend to purchase.

And if it turns out that the owners miss some hidden defects, too bad! If a judge decides that the Association is to blame for insufficient maintenance, then the HOA would be on the hook for all of the Contractors’ investigative and legal expenses! But if the Contractor turns out to be 100% to blame for shoddy construction, there is no equivalent sanction requiring that all of the HOA’s legal costs will be reimbursed. I have included a link to a Florida attorney’s blog and the bill itself below, for any skeptics among you who might think I am exaggerating.

This is the kind of legislation that, if enacted, will ensure full employment for construction defect attorneys all over the state of Florida, or alternatively, extort owners to simply pay dearly for all of the mistakes made – and corners cut – during construction.

(link to Florida HOA Lawyer Blog critique of HB 87)

(Florida HB 87 as filed)

Lawsuits, Drama, and political controversy surrounding Palm Beach, FL condominium association

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guest blog by Deborah Goonan

Here’s a condo story in Florida that might some day make the basis for a great TV movie script. It’s so bizarre. I can’t make this stuff up.

It involves Whitehall Condominium of the Villages, West Palm Beach, Florida.

First, I watched the WPBF news report of condo-owners breaking and entering the condo office to seize records, checks, and computer hard drives. It just so happens one of the homeowners involved was Katherine Waldron, a candidate for Palm Beach Commission.

Predictably, dirty politics is using this information to campaign against Waldron, and in favor of her competitor.

Waldron explains that in October 2014, FL Division of Professional and Business Regulation (DBPR) had authorized the removal of Condo President Vincent Rossi, and therefore the owners were justified in taking control of the Board and securing their assets and records.

Another video report from WPTV sheds additional light on the story. After a recent audit, owner Cary Collins and others became concerned about discrepancies in the financial records. There seemed to be money missing! Enter Vincent Rossi, former condo Board President. He admits to WPTV that he withdrew money from Association accounts to gamble in various casinos, but claims it was “his” money after all. Something to do with Rossi guaranteeing a past due water utility bill, he claims.

Whitehall owners have filed many other complaints with DBPR officials. But when the state fined the Association $5000, Whitehall Condo Association, led by Rossi, fought back unsuccessfully, at a cost of $130,000 to condo owners. Oh, and by the way, although he is no longer on the Board, Rossi is currently employed as the maintenance manager at Whitehall to the tune of $52,000 annually.

The owners have sued the Whitehall Condo Association and Mr. Rossi. The Association is now suing the owners for damages related to the break in.  WPTV reports an ongoing police investigation, which could result in criminal charges. Your tax dollars at work, Floridians, even if you are fortunate enough not to live in Whitehall or any other condo or HOA in the state.

It’s too early to tell how this battle will turn out, and we may never know the whole story if there is yet another round of out-of-court settlements with gag orders.

References:

(video of Palm Beach Commission candidate breaking into condo office)

(link to article about Palm Beach Commission race, Whitehall Condo)

(link to video interviews with upset condo owner, former condo president accused of wrongdoing)

(links to public record of court cases filed:)

(link to another court case)

Why Do HOAs Hate Renters?

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guest blog by Dave Russell
Most HOAs have long shunned those who rent properties within Homeowners Associations. I’ve heard every disparaging comment ever made, “renters are trashy, uncaring, and simply make for bad neighbors.”  Well I’m here to dispel those myths and misconceptions about renters.
 
Most renters are actually decent, hard working folks, who pay their bills, and follow the HOA rules more often than homeowners do. Let’s take a look at one of the renters in my own homeowners association. Stacey Barker, single mother of three, saw a Facebook post from co-worker, Romona, who she didn’t really know all that well.  Ramona posted a plea on Facebook for prayers, or for someone who would be willing to donate a kidney to save her dying husbands life.
 
Less than ten minutes after Ramona’s desperate Facebook post was published online, Stacey Barker – a woman Ramona hardly knew – replied. “I sent her two messages,” said Barker. “The first time I don’t think she took me seriously, and the second time I said, ‘No really, I will get tested and if I’m a match I will donate.” Stacy did get tested and was a perfect match! Such an uncaring renter, isn’t she?’
 
Stacy, the renter, took two months of unpaid leave from work and donated her kidney to a man she didn’t even really know. Aren’t these renters something else! Ramona’s husbands life was saved thanks to Stacy Barker. Pay close attention all of you HOA board members! Not every renter is a ‘bad neighbor.’